5 Tips for Paying Off Student Loans This advice is in your best interest (zing!)

5 Tips for Paying Off Student Loans This advice is in your best interest (zing!)

When you’re drowning in student loans, it’s practically impossible to not feel imprisoned by debt. Every financial decision you make requires you to think about how it will affect your monthly loan payments. If you want to pay off your student loans quickly—without eschewing all creature comforts—follow these five tips.

Prepay With Windfalls

Writing for U.S. News & World Report, education reporter Susannah Snider recommends taking advantage of any opportunity to prepay your student loans. If you get your income tax refund in the mail, win a lump sum on a scratch-off lottery ticket or receive a cash gift from a loved one, put it toward those loans.

Prepayments allow you to skip ahead toward the finish line. Instead of blowing a windfall on a new video game or a vacation to Tahiti, apply it to your student loans so you get them paid off faster. The more prepayments you make, the more time you cut off the loan.

Eliminate One Luxury From Your Life

Consider cutting cable for a while and instead using that money to pay off your student debt.

Maybe it’s the cable television you don’t really watch anyway or the morning stop at your local bakery for pastries and coffee. Pick a luxury in your life and cut it out; then apply the amount you were spending toward your student loans. Just add it to your monthly payment as if you’re paying for the luxury instead.

Everyone indulges in something he or she doesn’t really need. Think about magazine and paying-website subscriptions, brand-name supermarket foods in which the generic offers a pleasant substitute, or those weekly trips to the car wash when you could do it yourself with a bucket and a sponge.

Pay With Coupons

You don’t have to pay full price even when you want to buy something that isn’t on sale or clearance. Instead of forking over the list price, search for coupons that can help you save cash. The more money you avoid spending on daily necessities and luxuries, the more money you can contribute toward your student loans. If you’re still in school, check out our list of places that offer exclusive discounts to students.

Use coupons both online and off to generate the most savings. If you’re shopping in-store, use your smartphone or tablet to help you locate great deals. You can also search for printable coupons, which you can take with you to your favorite stores without worrying about charging your cell phone.

Set Up Auto-Pay

When you set up your student loan payments for auto-pay, you don’t have to remember to write a check every month. It’s an environmentally friendly way to pay because you won’t waste paper, and you won’t incur any late fees for missed payments. All you have to do is link your checking account, savings account or debit card number to the loan issuer.

Just make sure you include the scheduled loan payment in your check register. You don’t want to overdraft your account accidentally because you forgot about your monthly obligation. If you automatically record it at the start of each month, you can better manage your finances.

Get a Second Job

It might not be super fun, but getting a side gig like a job at a cafe is a solid way to make more money to throw at your debt.

A second source of income can help you pay off your student loans faster. Put every paycheck you receive from your second job toward the loans. If you get in that habit right away, you’ll never miss the money. Plus, after you pay off your loans, you can keep your second job, and use the extra money for luxuries or quit and gain some free time.

Look for a second job that provides flexible scheduling. A weekend gig might work best if you work a traditional nine-to-five primary job. Alternatively, consider a freelance job. If you have writing, photography, graphic design or project management skills, you can make yourself available for companies that want to outsource that kind of work.

Just make sure you don’t wear yourself too thin. Even though you want to pay off your student loans as quickly as possible, you still need time for friends, family, hobbies and rest. Don’t make your student loans the center of your universe; instead, strive for balance as you attempt to pay them off.

Getting rid of student loan debt will feel like a weight has been lifted off of your shoulders. Use the above strategies to pay debt off faster without putting yourself in financial jeopardy.